LATEST PUBLICATIONS
RPS 2022-01
How Does the Philippines Fare in Meeting the ASEAN Economic Community Vision 2025?
PJD 2022 Vol. 46 No. 1d
Surveying the Extent and Wage Consequences of Education-Job Mismatches in the Philippine Labor Market
PJD 2022 Vol. 46 No. 1c
Disentangling the Effects of Maternal Employment on Child Stunting in the Philippines
PJD 2022 Vol. 46 No. 1b
Sustainable Value Chain Financing for Smallholder Agricultural Production in the Philippines

LATEST AV MATERIALS
PIDS WB 2021-1201
Analyzing the President's Budget for 2022
GIZ-FFS-2020-01
WASHaLOT 3.0: Production Process
GIZ-FFS-2021-03
WASHaLOT 3.0 Mass Production
GIZ-FFS-2021-02
Minimum Requirement Guidelines on WASH in Schools
Publication Detail
DP 2013-39: Agriculture, Rural Employment, and Inclusive Growth

This paper argues that the development of the rural economy is a key factor for achieving inclusive growth, one that creates jobs, draws the majority into the economic and social mainstream, and continuously reduces mass poverty. Employment conditions in Philippine rural labor markets and agriculture can be characterized as casual or informal, with low skill requirements, with low productivity and returns, and a greater concentration of poverty. This is consistent with a prominent strand of development literature that posits a traditional sector, mostly located in rural areas, and highly dependent on agricultural livelihood. Development involves the change in economic structure, anchored on productivity growth in agriculture, involving a movement of labor from the traditional sector, as well as accelerated capital formation in industry and services.

Evidence, both international and for the Philippines, is favorable to the structural transformation perspective. For the Philippines, in particular, the evidence points to the following: agricultural growth causes nonagricultural growth, is tightly linked to downstream manufacturing, and contributes significantly toward reducing poverty. Agricultural growth has a differential impact on employment of the unskilled labor, indirectly reducing economywide labor cost by keeping food affordable. Lastly, agricultural productivity growth can have long-term dynamic effects by enabling farm households to invest in human capital, leading to intergenerational diversification of income sources.

The evidence suggests that the agricultural and rural economy should be at the forefront, rather than periphery, of the country`s strategy for quality employment generation; such a strategy completing an unfinished reform agenda for sustained development of the rural economy. This involves swift completion of the land reform program. Post-2014, the state should focus on developing a flexible and responsive market for land rights. Liberalization initiatives should be pursued in the area of market policy and logistics. Government should rationalize its role as market regulator. Support for agricultural production should be oriented toward enhancing agricultural productivity and comparative advantage based largely on the effective delivery of public goods and associated services such as R&D, irrigation, and other infrastructure. Agricultural development transcends productivity enhancement at the level of primary production, encompassing the agribusiness value chain and based on comparative advantage.



Philippine Institute for Development Studies
Authors Keywords
Briones, Roehlano M.; labor market; Philippines; employment; agriculture; rural development; inclusive growth;
Download PDF Number of Downloads
Published in 2013 and available in the PIDS Library or Downloaded 4,212 times since July 18, 2013
×
Please let us know your reason for downloading this publication. May we also ask you to provide additional information that will help us serve you better? Rest assured that your answers will not be shared with any outside parties. It will take you only two minutes to complete the survey. You will answer the profile questions only once as long as you enter the same email address. Thank you.


To use as reference:
If others, (Please specify):
Name: (optional)
Email: (required, but will not display; please use the same email address when downloading another publication so that the profile questions will not appear)
Age:
Gender:
If Prefer to self-describe, please specify:
Level of Education:
Occupation:
If employed either part-time or full-time, name of office:
If others, (Please specify):
Would you like to receive the SERP-P UPDATES e-newsletter? Yes No
Use the space below if you have any comment about this publication or SERP-P knowledge resources in general.